If you’re new to the profitable (and mildly complicated) art of Forex trading, you may have often heard of and wondered what MT4 and MT5 meant, and what the differences were. MT4 and 5 are two common and current versions of a popular trading software named MetaTrader. MetaTrader, produced by software company MetaQuotes Software Corp, is by far the most common of trading software for its ease of use, and overall flexibility as a software.
In most cases, when presented with two different products, you’d choose the newer upgraded version. But it’s not that simple when considering the difference between MT4 and MT5. You see, while MT5 is an upgrade in some regards, its differences also make it less appealing to some traders. It’s all a matter of personal preference and trading styles, and a question of what traders learned and have gotten used to over their time trading. Now, let’s go a little more in-depth into some of the most basic differences between the two versions of the software.
Size: MT5 is considerably larger than MT4, which matters a lot to traders who prefer speed and the ability to run their software on a number of smaller computers, or on a more light-weight, cheap and dedicated piece of hardware. MT5 also takes longer to download and install.
Interface: MT5’s interface is considerably larger than MT4, but a number of added options make it harder to navigate – especially to traders who have gotten used to the way MT4 works.
Analysis: Here’s where MT5 is most definitely better than MT4 – it comes with an inbuilt news calendar giving you information on Forex and finance-related news and information on a regular basis.
Trading: MT4 is all about unrestricted trading, which means it allows all methods of trading, including multi-hedging and hedging; important features to help ward off risk and build a safer, stronger profit. On the other hand, MT5 is a much more regulated software. It comes prebuilt with preferences and broker regulation, which makes it less customizable and restricts the freedom of brokers and traders.
Plugin Support: MetaTrader plugins are a huge deal. A MetaTrader plugin is a third-party separate piece of software that expands the platform’s trading abilities, and allows for a much wider array of features and functions that the base or stock software isn’t capable of.
A good example is what we provide here at FXBS – a MetaTrader bridge with a number of features that helps brokers specifically set their offerings to clients apart from the rest of the competition.
Why Do Most Traders Prefer MT4?
Although there are good reasons to upgrade, there are two considerable reasons why MT4 is preferred by a number of traders. For one, a major benefit to MetaTrader’s software is the implementation of simulation trading – through Expert Advisors. These are programs included in the trading platform that can be configured to help traders make wiser and better trades – and people pay a lot of money to get these EAs built. But all the investments made into MT4 platforms were made unusable with MT5, due to a different programming language – so instead of throw away their investments, traders decided to stick to MT4.
Another difference that matters is that hedging is no longer allowed by default in MT5. While the company has made efforts to persuade traders to switch to MT5, many still stick to MT4.
How FXBS Can Make Your Trading Much Smoother
Whether you use MT4 or MT5, our MetaTrader bridge turns your broker software into something spectacular – by adding a number of features including:
- Ultra low latency
• Reliable connectivity performance
• Support of all order types
• Support of all execution types such as IOC, GTC, FOK
• Support of partial fill orders
• Instant installation on your MT4 server
• Easy to manage with the MT Administrator tool
• Automatic SWAP updates
• A book and B book support
• Graphic User Interface (GUI) for reporting and order routing
• Alert notification system
• Compatible with other MT4 plugins
It’s all a broker would need – but the beauty is that it doesn’t have to be. We offer more than just a way for you to give clients a smoother access to their hard-earned money – we maintain the high customizability of MT4 and even MT5 by maintaining high compatibility with other MetaTrader plugins; because that’s what a trading software is supposed to be all about.